Newcrest posts second year of major loss

Australia's Newcrest Mining reported a statutory loss of A$2.2 billion in the year ended June 30, after asset writedowns of more than $2.3 billion, mainly relating to its Lihir mine in Papua New Guinea.

The latest financials compares with a statutory loss of A$5.8 billion in the 2013 financial year, when impairment at the giant Lihir operation came to a whopping $6.2 billion.

CEO Sandeep Biswas said a "company-wide improvement program has been initiated, which includes a major review at Lihir," adding that Newcrest expects "group production this year to be similar to that in financial year 2014" due to ramp up Cadia East and planned improvements at Lihir.

Key points of year to end-June

Statutory loss1 of A$2,221 million and Underlying profit of A$432 million

Significant items representing a net loss after tax of A$2,653 million, due primarily to A$2,353 million of asset impairments at Lihir, Telfer, Bonikro and Hidden Valley

EBITDA of A$1,514 million and EBIT2 of A$821 million

Gold production of 2,396,023 ounces and gold sales of 2,405,163 ounces was 14% and 17% higher than the prior year

Free cash flow was an inflow of A$133 million compared with a net outflow of A$1,417 in the prior year, with all operations free cash flow positive in the current year except Hidden Valley

Cash flow from operating activities was an inflow of A$1,037 million

All-In Sustaining Cost2 of A$976 per ounce (US$897 per ounce at an A$:US$ exchange rate of $0.9187) was 24% (32%) lower than the prior year

Gearing3 of 33.8% at 30 June 2014

A$1,808 million4 in cash and undrawn, committed bank facilities at 30 June 2014